04 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceIntroduction At the time of writing (end November 2011) the word that best describes the financial recruitment sector as a whole is uncertain. This uncertainty, felt by employers and job seekers alike, is affecting hiring and job seekers desire to move. Amongst this general malaise there are of course companies, industry sectors and job families that are bucking the trend and where good candidates are very difficult to find, but these instances are the exception rather than the rule. In this Market Trends report we’ll examine some of the demand and supply drivers and comment on some trends in some of the key commercial and financial services sectors. We hope that this analysis helps you to make your decisions on hiring or moving and of course we are very receptive to advising or helping you with any specific queries you may have. The remainder of 2011 is set to be a busy one for all involved in hiring but one fraught with frustration as there simply isn’t enough qualified talent to match the demand for the specific skills many companies are looking for. Businesses need to think laterally if they are to move forward or risk standing still searching for key talent whilst competitors have progressed. It is also key that while we are all looking for new staff that we don’t neglect the ones we have and we are constantly looking for ways to further engage our own people otherwise our hiring challenges will be exacerbated. Paul Lyons Managing Director - Australia
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 05Demand DriversCautious And RestrainedWhilst the first six months of the year showed some revival of employer confidence, the recentevents in Europe have created an uncertainty that means any investment in people is being muchmore stringently evaluated than before.Demand is well down in recent months due to both a lack of investment in new finance positionsand the negative multiplier effect it has on positions. Fewer available positions means that fewerpeople are accepting those jobs so fewer are resigning creating fewer vacancies and so on,creating a lack of candidate liquidity or “churn”.The caution creates a completely different mindset in the hiring process. Instead of a quickdecision to replace the individual in a short recruitment process, the role is subject to intensescrutiny as the employer seeks to reduce costs by spreading responsibilities across the team eithertemporarily or permanently. Mission critical positions are being replaced but in larger companiesthe role often needs multiple sign-off by decision makers who could be interstate or overseas.We are noticing that recruitment processes are taking longer and longer, as decisions are deferred,delayed or moved through multiple levels of signoff.The selection process is often lengthened by having more decision makers to interviewcandidates to help diffuse the risk of a poor hire but this creates challenges in keeping candidatesengaged in the process. When candidates are “strung along” we often see their initial enthusiasmand interest wane.The retail and investment banks are so often the key drivers to market sentiment and theyare much quieter than in recent months with reorganisations and rationalisations creatingredundancies particular in middle management and vanilla finance positions although there is stillsome recruitment in key specialist positions and entry level finance.Replacement Recruitment Re-Emerging – ‘Exact Fit Required’The recruitment market is increasingly taking on the characteristics of a poor economy marketwith pressure building on finance teams to meet increased demands to higher standards withfewer people. In addition, finance teams are increasingly operating in an environment withmore ad hoc requests, higher levels of scrutiny, and more queries and clarifications soughtby the business. People at all levels are being replaced if they can’t or won’t respond tothe new conditions. Organisations are taking the opportunity to upgrade the quality of their finance team if they see the available talent and often waiting until they see an ‘exact fit’ in terms of profile before they make the change.
06 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceIncrease In Off-Shoring Of Transactional RolesOffshoring of business processes has had a material impact on some job families, especially in theback office of banks and other financial services organisations. Banking operations and process-driven accounting and reporting roles are being increasingly offshored.We note that the window of opportunity for salary arbitrage is limited, as salaries for educatedEnglish speakers in popular offshore locations are increasing at a faster rate than marketbenchmarks, so cost savings will decrease over time. However scale and synergies are stillcompelling reasons for some orgainsations to continue to offshore process roles.Anecdotally, some business managers comment that delays and mistakes compromise the qualityof output from offshore locations and increase the workload of local teams, and further questionthe real cost savings delivered by offshore hubs. Other managers remark positively about thequality and timeliness of well-run offshore shared services centres.Attracting the right people to offshore centres is a further challenge as there are high levels ofcompetition, and people tend to churn more in offshore hubs than in roles that are closer to theactual business. Further, we have noted some comments from managers in Australia who bemoanthe fact that due to offshoring of junior and process roles, they no longer have a local talent poolfrom which to cherry pick high performers to advance through their business. In our view, thisis the unmeasured, long-tail, and a potentially serious cost of offshoring. Businesses could findthemselves severely compromised in the future when demand for people is high and supply low.Candidates With Broad Skills Still In DemandFor all the uncertainty and negative comments above, high calibre candidates are still verymuch in demand. Those with a sound pedigree, good communication skills and who are eithertechnically strong or commercially adept or both, have access to some interesting opportunities.
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 07Supply DriversUncertainty Creates Fewer Active Employed Job SeekersIn the same way market uncertainty changes employer hiring behaviour, it also changes jobseeker behaviour.In an uncertain economy where jobs are hard to come by, employed job seekers focus on stayingemployed and even if they do look at other roles they are more stringent in their choice ofnew employer and role with a preference for larger companies with recognized brand names inpositions that carry a low degree of risk.In an uncertain economy a poor move is much more difficult to recover from financially andcandidates are much more likely to tread water for a period of time than risk a poor move.This lower propensity to move has a number of effects. It creates much higher retention andlower churn but also, each month that goes by adds to a build-up of negative sentiment whichwhen confidence returns to the market will result in a surge of people coming to the market tofind another job causing market activity to spike. (This happened in the first half of 2010 whenpeople who didn’t want to move during the GFC took their first opportunity).In sharp contrast there are many candidates currently unemployed who are actively seeking workand are often more flexible in terms of desired criteria for roles or companies and are often willingto work at a lower salary to get back into the employment market.General Over-Supply Of ContractorsAustralia has traditionally been a destination of choice for many accountants seeking short-terminternational experience, particularly those from Ireland & the UK. Given the poor Europeaneconomies and the perception that Australia is faring better economically, we have experienceda recent influx of talented young professionals on working holiday visas seeking short termaccounting contracts.There are also more local candidates in between jobs with good skills and experience who areflexible on assignments and to a certain extent flexible on hourly and daily rates also.
08 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceFour Key Employment TrendsKeep Your Best PeopleWhilst the general mood of finance professionals currently is to be risk averse in their careers,you should take advantage of this stability where you can by recognizing and rewarding yourbest people. This can be done financially and through giving additional career developmentopportunities and work responsibilities.Not only do you get the best from them, you also create more goodwill and loyalty that willhopefully mean they are more likely to stay when the good times return.No Market Pressure On Salaries But Reward Your BestThere is certainly no upward pressure on salaries and indeed with employers enjoying a relativeposition of strength in the market, we are seeing salaries and related benefits such as sign-on andannual bonuses fall. You should obviously ensure that you reward your best people to be at leastat market rates as they will continue to be courted by others with higher packages. However, forthose not in the critical positions or whom are rewarded reasonably well at present, not awardinga cost of living or merit salary increase is a relatively low risk option.Upgrade Your Finance Team Where You CanThere are good candidates available and seeking opportunities, and with a subdued market youmay have more time and more choice than you would if the market was hot. Replacing certainstaff with better people from the market can be an effective way to improve your productivityand bench strength.Use Temporary Staff As A Variable Cost To Complete SpecialistProjects Or Relieve Pressure On Overworked Permanent Staff.With permanent teams stretched, there are good quality temporary and contract staff available tocomplete specialist assignments or relieve pressure. Since it’s a variable cost they can be switchedon or off as conditions dictate.
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 09Accounting Jobs Index – Seasonally AdjustedBanking Sector UpdateRetail BankingThe retail banking sector experienced a fairly strong start to the calendar year and the 2010-2011 profit results announcements demonstrated how well our local retail banks are run, in thecontext of the challenging economic conditions. However cautious business and consumersentiment is driving credit demand lower, meaning conservative projections for revenue growth,meaning limited additional investment in people. The cost of funding looks set to increase. Thedomestic banks will keep headcount flat or look for further opportunities for cost efficienciesand reductions. Recruitment freezes and redundancies are terms being used more frequently,but there are still some opportunities for high calibre business analysts, project accountants andfinancial accountants with high quality prior retail banking or retail banking audit experience.Investment BankingBusiness conditions are very challenging and all investment banks have a clear focus on costs.There are few new positions being created, as organisations remain conservative in the faceof global uncertainty. Increased regulatory scrutiny has meant that risk, audit and complianceprofessionals are in relatively high demand, and as usual specialised experience (for example,product control) remains in demand.
10 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceWealth ManagementIt’s been a difficult year for the wealth management sector, with a number of players facingoperational challenges relating to acquisitions and systems integration, in a market that has sufferedthrough a turbulent results period. Generally poor results and overall market volatility has led to adecrease in funds under management and an according decrease in employment demand.Back Office & OperationalRegular review of custodian fund administration arrangements continues to drive demand forcustodian fund professionals, with numerous opportunities emerging over the last few monthsfor accountants with experience in this area. This demand has not led to an increase in salariesas downward pressure in the broader operations and back office space influence a stableenvironment.There continues to be demand for project accountants and administrators driven around ongoingtransition and systems integration projects. Transition specialists are in high demand, andaccountants with transition backgrounds are finding work on either a contracting or full time basis.Off-shoring has also lessened demand as several banks continue to transition their non-technicalback office operations overseas.Audit, Compliance And Risk Remains In DemandFor several years now audit, compliance and risk have experienced steady demand in both thebanking and commercial sectors. The necessity of improved reporting controls in an increasinglydemanding regulatory environment has ensured a steady demand for audit, compliance, reportingand treasury professionals. We don’t see this trend easing over the short to medium term. Thoseprofessionals with good technical skills, especially Basel 3 experience, and the ability to articulatethe benefits of this focus to both internal and external stakeholders are actually enjoying upwardpressure on wages in certain areas.
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 11Salary Guide – Financial Services SectorBanking & Finance Years of Experience Annual Salary Range (AU$)Operations ManagementHead of Operations 10+ years 160K-200KManager 7 - 10 years 110K-150KTeam Leader 4 - 6 years 80K-110KAnalyst 2 - 4 years 50K-80KPerformance AnalyticsManager of Performance 10+ years 110K-150KTeam Leader 7 - 10 years 90K-110KSenior Analyst 4 - 6 years 80K-95KAnalyst 2 - 4 years 60K-80KRelationship ManagementHead of Sales 10+ years 200K+Relationship Manager / BDM 7 - 10 years 140K-180KAssistant Relationship Manager 4 - 6 years 90K-130KResearchHead of Research 10+ years 250K+Manager 7 - 10 years 140K-200KSenior Analyst 4 - 6 years 100K-140KAnalyst 2 - 4 years 80K-100KCorporate FinanceDirector/Head of Corporate Finance 10+ years 300K+Associate Director 7 - 10 years 160K-200KSenior Analyst 4 - 6 years 110K-150KAnalyst 2 - 4 years 80K-100KAssociate Analyst 1 - 2 years 60K-80KCorporate ActionsHead of Corporate Actions 10+ years 130K-160KManager 7 - 10 years 90K-120KTeam Leader 4 - 6 years 80K-100KAnalyst 2 - 4 years 60K-85KPortfolio AdministrationHead of Administration 10+ years 110K-130KManager 7 - 10 years 90K-110KTeam Leader 4 - 6 years 70K-90KOfficer 2 - 4 years 50K-70KTreasury OperationsHead of Operations 10+ years 150K-200KManager - Derivatives 7 - 10 years 100K-130KManager - Fixed Interest 7 - 10 years 100K-130KManager - FX/MM 7 - 10 years 100K-130KTeam Leader - Derivatives 4 - 6 years 75K-95KTeam Leader - Fixed Interest 4 - 6 years 75K-95KTeam Leader - FX/MM 4 - 6 years 75K-95KOfficer / Treasury 2 - 4 years 50K-75KEquity OperationsManager 10+ years 100K-135KTeam Leader 7 - 10 years 70K-110KSettlements 2 - 5 years 55K-80KSponsorship / Bookings 2 - 5 years 55K-80K
12 | Ambition – Market Trends & Salaries Report 1H 2012 – Finance Banking & Finance Years of Experience Annual Salary Range (AU$) Compliance Head of Compliance 10+ years 250K-300K+ Compliance Manager 7 - 10 years 130K-200K Senior Compliance Analyst 4 - 6 years 80K-120K Compliance Officer 2 - 4 years 60K-80K Risk, Audit & Compliance Chief Risk Officer 13+ years 350K-500K Credit Risk Head of Credit Risk 10+ years 250K-300K+ Manager 7 - 10 years 120K-180K Senior Analyst 4 - 6 years 80K-120K Analyst 2 - 4 years 50K-80K Operational Risk Head of Risk 10+ years 250K-300K+ Manager 7 - 10 years 130K-220K Senior Analyst 4 - 6 years 100K-140K Analyst 2 - 4 years 50K-80K Market Risk Head of Risk 10+ years 250K+ Manager 7 - 10 years 150K-200K Senior Analyst 4 - 6 years 100K-150K Analyst 2 - 4 years 70K-100K Audit Head of Internal Audit 10+ years 220K-280K Audit Manager 7 - 10 years 130K-200K Senior Internal Auditor 4 - 6 years 80K-120K Internal Auditor 2 - 4 years 60K-90K Accounting & Finance Years of Experience Annual Salary Range (AU$) CFO/Divisional Finance Director 15+ years 300K+ Tax Head of Tax 10+ years 250K+ Tax Manager 7 - 10 years 150K-190K Senior Tax Accountant 4 - 6 years 90K-140K Tax Accountant 2 - 4 years 70K-90K Financial Reporting Senior Finance Manager 10+ years 170K-220K Finance Manager 7 - 10 years 120K-160K Senior Accountant 4 - 6 years 100K-120K Accountant 2 - 4 years 70K-100K Management Reporting Divisional Controller 10+ years 200K+ Planning & Analysis Manager 7 - 10 years 150K-200K Senior Financial Analyst 4 - 6 years 110K-140K Financial Analyst 2 - 4 years 80K-110K Product Control Head of Product Control 10+ years 180K-240K Manager Product Control 7 - 10 years 140K-170K Senior Product Control 4 - 6 years 110K-130K Product Control 2 - 4 years 80K-100K Fund Accounting Head of Fund Accounting 10+ years 170K+ Senior Fund Accounting Manager 8 - 10 years 130K-170K Fund Accounting Manager 6 - 8 years 110K-130K Senior Fund Accountant 4 - 6 years 85K-110K Fund Accountant 2 - 4 years 65K-85K
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 13Commercial Sector UpdateMiningThe strength of the mining sector has created back office demand and there is certainly jobsgrowth in the sector and in the services that support the industry; production line, processing,transport & logistics, facilities management and engineering equipment and maintenance.Demand is across the board from plant accountants to management accountants, projectsspecialists and business analysts although confined mostly to Brisbane and the Hunter Valley,thereby bypassing Melbourne and Sydney.Energy & UtilitiesThere is enormous strength in this industry chasing top line growth through new markets andproducts. It is somewhat insulated from the economic turbulence which reflects in the demandfor specialists sector experience in financial analysis and costing and management accounting.TelecommunicationsIn this intensely dynamic sector, demand has been surprisingly brisk as the players seek financialtalent with the ability to be adaptable to a fast moving complex sector. Demand is at all levels andpreferably for those with prior sector experience in costing, projects and analysis.Retail/FMCGIn another tough year for the retail & FMCG sector, demand for accountants is low and witha pressure on costs, the demand is mostly for cost accountants, as well as accountants withexperience in either supply chain or logistics management. With increasing pressure onprofitability, and margins being squeezed aggressively, companies continue to look to the financeteams to find ways to both reduce cost whilst maintaining operational capability.Property & ConstructionWe’re experiencing limited demand in this sector and usually for high quality candidates infinancial reporting and analysis and again prior sector experience is wanted.MediaWith this sector also undergoing rapid change, accountants who can demonstrate prior sectorexperience and expertise in analysis and change are in demand especially with regards to thefuture of content delivery, how can the transition from print to online best be managed, and whatwill the financial model do to underpin all these developments?Risk Audit and ComplianceEmployers are reacting to the increasing regulatory and corporate governance demands byincreasing the headcount and pedigree of their audit and risk teams as well as ensuring theirfinancial control and reporting remains robust.
14 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceProfessional Services SectorOver the last few months we have witnessed a strong increase in activity in the professionalservices space, particularly amongst the second tier and mid-sized accounting firms across therange of business services, audit and tax as well as insolvency. owever as nervousness hits, the bigfour have been putting graduate intakes back and/or offering staff leave to gain more cost control.Salary Guide – Accounting & Commerce Title Years of Experience Annual Salary Range (AU$) CFO / Divisional Finance Director 15+ years 270K+ Tax Head of Tax 10+ years 180K-250K Tax Manager 7 - 10 years 140K-180K Tax Accountant 4 - 7 years 90K-130K Treasury Head of Treasury 10+ years 180K-250K Treasury Manager 7 - 10 years 140K-180K Treasury Accountant 4 - 7 years 90K-130K Audit Head of Internal Audit 10+ years 180K-250K Internal Audit Manager 7 - 10 years 150K-180K Senior Internal Auditor 4 - 7 years 110K-150K Internal Auditor 2 - 4 years 80K-110K Financial Reporting Group Financial Controller 10+ years 180K-250K Finance Manager 8 - 10 years 150K-180K Senior Financial Accountant 5 - 8 years 120K-140K Financial Accountant 3 - 5 years 80K-110K Commercial / Management Accounting Commercial Manager / Director 10+ years 180K-250K Senior Management Accountant / Manager 8 - 10 years 150K-180K Management Accountant 5 - 8 years 90K-140K Cost Accountant 4 - 7 years 70K-120K Strategy & Planning Head of M&A 10+ years 220K-260K Financial Planning & Analysis Manager 8 - 10 years 160K-210K Senior Financial Analyst 5 - 8 years 120K-150K Financial Analyst 2 - 5 years 80K-120K
Ambition – Market Trends & Salaries Report 1H 2012 – Finance | 15About AmbitionAmbition FinanceAmbition Finance specialises in the recruitment of permanent and contract Accounting andBanking and Financial Services Professionals. We have offices in Sydney, Parramatta, Melbourne,London, Hong Kong and Singapore.We advise and recruit newly qualified Accountants through to CFO level and we are able to reachoutstanding financial services professionals in accounting, banking, funds, insurance, operations,risk, analytics, audit and compliance.Simon Tobin David BamfordManaging Director DirectorNSW VICTalent Services TeamThe Talent Services Practice within Ambition Finance consists of a team of dedicated ‘TalentConsultants’ that are based across Australia. Providing specialist advice and assistance to financeprofessionals, our objective is to partner with you to ‘Build Better Futures’ to ensure you have thenecessary skills, knowledge and networks to achieve your future aspirations.We manage and tailor our offering to a number of specialist network groups and offer: §§ Career planning, appraisal support and interview guidance §§ Exposure to specialist recruitment Consultants §§ Specialist network groups include: 1st movers CAs, International Qualified Accountants, Audit, Risk & Compliance, Product Controllers, Fund Accountants, Banking and Operations, and more.For more information on joining one of our specialist network groups and broader servicesoffered by the Talent Services team contact Emma Collins, Manager, Talent Services on(02) 9249 5062 or firstname.lastname@example.org
16 | Ambition – Market Trends & Salaries Report 1H 2012 – FinanceOther ServicesAmbition TechnologyAmbition Technology, based in Sydney, Melbourne and Brisbane, is structured to mirror theIT departments of its National portfolio of clients, with three dedicated teams of consultantsfocusing on Applications, Business Engagement and Infrastructure. We are actively involved in the Technology market, we know what’s happening, where and with whom. You receive information to allow you to stay competitive and ahead of the curve. Andrew Cross Managing Director – Ambition Technology email@example.comAccountAbilityAccountAbility is Australia’s only specialist company which purely recruits in the accountingsupport sector. We have established a network of thoroughly screened, skilled and experiencedcandidates within the accounting support sector that are immediately available to satisfy ourclients requirements. Quality aligned with speed of service is at the core of what AccountAbilitycan offer and we fill 80% of temp roles over the phone and 90% of our perm roles within 6 - 8working days. We have a business and a brand which talks specifically to our target market; understands what drives candidates in support roles to change job and most importantly how they like to be treated. Ruairi Flynn Managing Director – AccountAbility firstname.lastname@example.org